Most sellers feel their home is unique. Their emotional feelings about the uniqueness of their home lead them to overprice it.

 

Most people feel that they can strike a better bargain than others did in selling their home. This feeling of superiority leads them to overprice their home.

 

Sellers have the feeling that their house is unique, and think that it won't be affected by market trends. The seller might believe that the fact that similar other houses in the area sold for less is not relevant for their house.

 

Often sellers become the victims of misinformation and end up overpricing. The sources of such misinformation include friends, relatives, neighbors, other agents, and the Internet, etc.

 

Usually sellers overestimate the cost of additions and upgrades to their house and the appreciation in its value. They price their house to recover the total cost of additions and upgrades. Appreciation is relative to the marketplace and how their house fits into that market.

 

Sellers like to recover all the costs they incurred over time in house improvements. Usually they inflate these costs and end up overpricing.

 

Rather than realistically pricing the house based on facts, many sellers relate the price to their needs. Thus if their needs are high, they set a higher price for their house. If a seller were moving to an area where house prices are higher than the value of their existing house, the sellers may overprice the existing house.